‘Buyout plan’ for stricken Game Group
Lenders of stricken Game Group are reported to be working on plans to buy the slimmed-down retailer out of administration.
With Game’s British operations expected to go into administration today, the consortium of existing banks led by state-backed Royal Bank of Scotland is among three potential bidders, reports said.
PwC, the administrator, is likely to announce the closure of loss-making stores within the 600-strong store estate, triggering job losses among the 6,000-strong workforce, before selling a profitable “phoenix” company.
Bids are also expected from American rival Gamestop and OpCapita, which recently acquired Comet and has tabled one offer for Game already.
The RBS-led consortium is expected to roll the existing debt of about £85m into the new company.
On Wednesday, Game said it had filed a notice of intention to appoint an administrator, having admitted there was no value left in the company and leading to the suspension of its shares.